Three reasons why NFT is the next evolution of art collection

How NFT works

NFT is a value system that you can fill with any content. Like a piece of white paper or a check, it is a blank canvas that can be defined with any kind of content. Since each NFT has a unique ID, there’s no need to go through manual inspection and complicated verification, and they can be automatically read and recognized. This feature makes NFTs a digital container, marking the ownership of native digital assets in a decentralized form.

NFT Art Collection

In the past six months, there were some interesting NFT cases that helped us understand and broaden our imagination of NFT applications.

Cryptopunks NFT artwork
Figure 1: CryptoPunks NFT artwork
Cai Guoqiang’s “Momentary Eternity -The Detonation of 101 Gunpowder Paintings”
Figure 2: Cai Guoqiang’s “Momentary Eternity —The Detonation of 101 Gunpowder Paintings”

1. Transparency of data

The whole process of bidding and selling NFT artworks is transparent. Data on the buyer (address), the price at which an artwork was sold, and the price at which it can be sold in the future are all written on the Blockchain openly. You also can’t delete the data.

2. Distribution of profit

From the viewpoint of artists, it can be more profitable to sell their artwork on the NFT market, rather than the traditional auction market. The artist receives the profit of the transaction between them and the collector, including any subsequent change of hands. A smart contract automatically executes buying, selling and profit calculations, eliminating considerable intermediary costs and increasing profit margins.

3. Low barriers to entry

Usually, there’s a high threshold to enter a traditional art auction and collection market, but the NFT market is completely democratized. Anyone can participate in NFT transactions anytime as long as they have a Blockchain wallet. Can’t afford Cai Guoqiang’s 2.5 million US dollars paintings? No worries, there are countless other content assets in the NFT market, ranging from a few dollars to tens or hundreds of dollars.

NFT artworks on OpenSea
Figure 3: NFT artworks on OpenSea

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Matters Lab was established in 2018, with the mission to create a freer and fairer creator ecosystem through the next evolution of the Internet, Web3.